SHRM- UNIT III

CROSS CULTURAL HRM

CULTURE???????
?

STAFFINGIHRM

ETHNOCENTRIC
APPROACH
POLYCENTRIC APPROACH
GEOCENTRIC APPROACH
REGIOCENTRIC APPROACH

IHRM VS HRM

INTERNATIONAL BUSINESS

Multinational
International
Transnational
Global

INTERNATIONAL BUSINESS

International companiesare importers and exporters,

they have no investment outside of their home country.
Multinational companieshave investment in other
countries, but do not have coordinated product offerings in
each country. More focused on adapting their products and
service to each individual local market.
Global companieshave invested and are present in many
countries. They market their products through the use of
the same coordinated image/brand in all markets. Generally
one corporate office that is responsible for global strategy.
Emphasis on volume, cost management and efficiency.
Transnational companiesare much more complex
organizations. They have invested in foreign operations,
have a central corporate facility but give decision-making,
R&D and marketing powers to each individual foreign
market.

OUT SOURCING

What is outsourcing?
The strategic use of outside resources to perform
activities
traditionally handled by internal staff and resources
Eg: HR outsourcing, Online Video game, Drug trial
testing.
Eddingpharm Vs GSK-Pharma
Why Outsource?
Provide services that are
- scalable
- secure
- efficient
- improving overall service and reducing costs

PROBLEMS IN
OUTSOURCING

Loss of Control
Increased cash outflow
Confidentiality and security
Selection of supplier
Too dependent on service provider
Loss of staff or moral problems
Time consuming
Provider may not understand business
environment
Provider slow to react to changes in strategy

CROSS BORDER M & AMEANING

Involving movement or activity across a border between two

countries
Business - overseas; international
Military - across a border
MERGER
A general term used to refer to the consolidation of companies. A
merger is a combination of two companies to form a new
company.
Eg: British Salt, UK merged with TATA Chemicals India.
Bank of Rajasthan, India merged with ICICI,India
ACQUISITION
An acquisition is the purchase of one company by another in
which no new company is formed.
Eg: Bharti Airtel acquired Kuwait based Zain
The biggest deal in Pharmaceutical sector was the
acquisition of the generic drug unit of Piramal Health care by USA
based drug maker Abbot Laboratories (ABT)